Nintendo's Sole Supplier for Nintendo Switch Screens Is Facing Financial Turmoil

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The sole supplier of Nintendo Switch displays, Japan Display Inc. (JPI), is in a bit of financial trouble. According to The Wall Street Journal, JPI reported a net loss of ¥31.5 billion ($286.4 million) for the financial quarter ending in June, and things don't seem to be looking up. Today it's come to light that JPI announced that it wouldn't rule out a partnership with a Chinese or Taiwanese company to survive. This, despite JPI's goal to be the number one domestic display business in Japan.

According to the WSJ, Japan Display executives apologized today for poor management of the company, and a drastic restructuring is due to take place imminently. This initiative will result in the loss of 3,700 jobs worldwide -- that's about 30% of JPI's current total workforce. Overseas operations will understandably be slashed, but more injurious is the fact that JPI will be shutting down domestic factories as well.

“We continue to face very severe market conditions,” financial chief Takanobu Oshima said, predicting a 15% to 25% drop in revenue in the year ending March 2018 from a year earlier. Much of this loss is due to the fact that Apple, JPI's most prominent and lucrative partner, is moving away from liquid crystal displays in favor of OELD screens. Currently iPhone displays make up over 50% of JPI's revenue, and as Apple makes that shift to OLED, growth and revenue will only continue to retard for the struggling display manufacturer.

End of the quote for now, there's more written in the article.

If it turns bad, there is a slight chance we will be able to see a new Switch hardware revision. Either the displays will be made by a new manufacturer, a new type of display, or perhaps a less than normal quality display? Who knows at this point.

Apple ditching the LCD displays for OLED displays could also mark a change on the fate of the company itself. Given that Nintendo has contracted enough for up to 10 million displays, and if the company bankrupts, we could be seeing an unprecedent lack of Switch hardware sales. Why? It takes a long while to get contracts ready, and production lines working to bring the sales back up to speed. Not just that, manufacturers have to compete with the highest bidders in order to finance itself. Nintendo here is just a drop in a bucket when it comes to who has the highest bids.

Read more here (ComicBook)

 

[GarnetSunset]

Thanks for the heads up.

 

[TotalInsanity4]

Well...

Good thing I have one I guess

Edit: if they do bankrupt, expect to see a "Home only" Switch console with better cooling and a slight overclock for smoother gameplay

 

[Saiyan Lusitano]

Read this before. Nintendo needs to get it together, they aren't a green company, they are the big N so this is completely unacceptable.

Stop producing limited quantities of products that people want to buy because this only ends up on sales that the scalpers will take, that and people won't trust/care about Nintendo then.

The only reason Nintendo doesn't lose its fanbase is because of the popular, classic video game franchises otherwise they'd be history and no better than SEGA.

 

[WiiUBricker]

I think there are enough alternatives for Nintendo to choose from.

Switch with OLED panels pls

 

[TotalInsanity4]

Read this before. Nintendo needs to get it together, they aren't a green company, they are the big N so this is completely unacceptable.

Stop producing limited quantities of products that people want to buy because this only ends up on sales that the scalpers will take, that and people won't trust/care about Nintendo then.

The only reason Nintendo doesn't lose its fanbase is because of the popular, classic video game franchises otherwise they'd be history and no better than SEGA.

... either you didn't read the post or have no idea what it was talking about

 

[Saiyan Lusitano]

... either you didn't read the post or have no idea what it was talking about

It's always Nintendo who has trouble with this or that. A little too convenient.

 

[the_randomizer]

I think there are enough alternatives for Nintendo to choose from.

Switch with OLED panels pls

OLED has issues with burn in though.

 

[TotalInsanity4]

It's always Nintendo who has trouble with this or that. A little too convenient.

...

...


If you're wondering why you keep reading stuff like this here, I'd implore you to look at the name of the website

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OLED has issues with burn in though.

It's not bad, you just need to make sure you don't leave the screen on a still image

 

[the_randomizer]

...

...


If you're wondering why you keep reading stuff like this here, I'd implore you to look at the name of the website

--------------------- MERGED ---------------------------


It's not bad, you just need to make sure you don't leave the screen on a still image

That shouldn't be an issue in this day and age, nor should it be something to even have to consider. Oh well.

 

[TotalInsanity4]

That shouldn't be an issue in this day and age, nor should it be something to even have to consider. Oh well.

OLED is crisper and has beautiful blacks, though. That's why people like it

 

[Saiyan Lusitano]

If you're wondering why you keep reading stuff like this here, I'd implore you to look at the name of the website

The name doesn't matter, this isn't a fanboy community which everyone should just praise Nintendo. Nintendo does limited quantities on purpose for the whole supply & demand farce.

Nintendo's becoming the boy who cried wolf one too many times.

 

[the_randomizer]

OLED is crisper and has beautiful blacks, though. That's why people like it

Eh, but the burn in risk, IDK, AMOLED would be better.

The name doesn't matter, this isn't a fanboy community which everyone should just praise Nintendo. Nintendo does limited quantities on purpose for the whole supply & demand farce.

Nintendo's becoming the boy who cried wolf one too many times.

On that same note, people on here consistently defend Sony and Microsoft as if they were infallible.

 

[Kioku]

It's always Nintendo who has trouble with this or that. A little too convenient.

What does Nintendo have to do with their third party suppliers facing financial issue? Really?

You look for any excuse to preach your anti Nintendo shtick. I swear.

 

[TotalInsanity4]

The name doesn't matter, this isn't a fanboy community which everyone should just praise Nintendo. Nintendo does limited quantities on purpose for the whole supply & demand farce.

Nintendo's becoming the boy who cried wolf one too many times.

Once again, you didn't understand what i was saying. I mean that you're going to hear a majority of Nintendo related news since this is primarily a Nintendo community. And besides, it was the Wall Street Journal that published this, not Nintendo... so how is Nintendo crying anything?...

 

[jimmyleen]

Eh, but the burn in risk, IDK, AMOLED would be better.


On that same note, people on here consistently defend Sony and Microsoft as if they were infallible.

Sounds to me like you spend too much time on gbatemp.

 

[Saiyan Lusitano]

On that same note, people on here consistently defend Sony and Microsoft as if they were infallible.

Haven't noticed that.

You look for any excuse to preach your anti Nintendo shtick. I swear.

You think I'm anti-Nintendo because I'm critical, I'm not anti-Nintendo because if I were then I wouldn't buy their shit.

 

[the_randomizer]

Haven't noticed that.


You think I'm anti-Nintendo because I'm critical, I'm not anti-Nintendo because if I were then I wouldn't buy their shit.

Oh my bad, I was thinking of NeoGAFFE and IGN.

 

[Kioku]

Oh my bad, I was thinking of NeoGAFFE and IGN.

NeoGiraffe. :o

 

[Deleted User]

Haven't noticed that.


You think I'm anti-Nintendo because I'm critical, I'm not anti-Nintendo because if I were then I wouldn't buy their shit.

Once again, you didn't understand what i was saying. I mean that you're going to hear a majority of Nintendo related news since this is primarily a Nintendo community. And besides, it was the Wall Street Journal that published this, not Nintendo... so how is Nintendo crying anything?...

Seemed to have missed the primary argument bud